As the healthtech landscape rapidly evolves another startup is making its presence known. HealNow has closed a $1.3 million round of funding from SoftBank Opportunity Fund and Redhawk VC.
The company was founded by Halston Prox and Joshua Smith. Prox has worked in healthcare for more than a decade with major organizations such as Providence Health, Mount Sinai and Baylor Scott & White, mostly focused on digitizing health records and designing and implementing software for doctors, nurses, etc. Smith, CTO at the company, has been a developer since 2012.
The duo founded HealNow to become the central nervous system for order and delivery of prescriptions, according to Prox. Your average payments processing system isn’t necessarily applicable to pharmacies large and small because of the complexities of health insurance and the regulatory landscape.
Not only is it costly to facilitate online payments for pharmacies, but they also have their own pharmacy management systems and workflows that can be easily disrupted by moving to a new payments system.
HealNow has built a system that’s specifically tailored to pharmacies of any shape or size, from grocery stores to mom and pop pharmacies and everything in between. It’s a white label solution, meaning that any pharmacy can put their brand language on the product.
“We’re embedded in their current workflows and pharmacies don’t have to do anything manual, even if they’re using a pharmacy management system,” said Prox.
When a user looks to get a prescription from their pharmacy, they are sent a link that allows them to securely answer any questions that may be necessary for the pick-up, enter insurance info, make a payment, and schedule a curbside pick-up or a delivery. The tech also integrates with third-party delivery services for pharmacies that offer deliveries.
This technology has been particularly important during the COVID-19 pandemic, giving smaller pharmacies the chance to compete with bigger chains who have digital solutions already set up that allow for curbside pick up. This is especially true now that Amazon has gotten into the space with the launch of Amazon Pharmacy.
HealNow is a SaaS company, charging a monthly subscription fee for use of the platform as well as a service fee for prescriptions purchased on the platform. However, that service fee is a flat rate that never changes based on the cost of the prescription.
The space is crowded and growing more crowded, with competitors like NimbleRX and Capsule offering their own spin on simplifying and digitizing the pharmacy. One big difference for HealNow, says Prox, is that the startup has no intention of ever being a pharmacy, but rather serving pharmacies in a way that doesn’t disrupt their current workflow or system.
“We’re not a pharmacy, and we want to enable all these pharmacies to be online,” said Prox. “To do that we have to do that in an unbiased way by focusing on being a complete tech company.”
The funding is going primarily toward building out the sales and marketing arms of the company to continue fueling growth. HealNow has a foothold in the West, Southwest and Middle America, and is opening an office in Birmingham to sprint across the East Coast. Prox says the company is processing thousands of orders a day and tens of thousands of orders each month.
HealNow launched in 2018 after graduating from the Entrepreneurs Roundtable Accelerator .
This post first appeared here: https://techcrunch.com/2020/12/09/healnow-raises-1-3-million-to-bring-online-payments-to-pharmacies/